Connect with us

Business

Phuket Finance: Avoid offshore workers’ retirement-plan pitfalls

Legacy Phuket Gazette

Published 

 on 

Phuket Finance: Avoid offshore workers’ retirement-plan pitfalls | The Thaiger

PHUKET: Thailand hosts a sizable population of offshore oil workers. They are unlike the majority of investment clients found here. Most clients are retired and their portfolios are being managed for income and capital preservation.

However, offshore oil workers have the advantage of being able to live in Thailand and also bring in a very nice income. In 1993, I was a project mechanical engineer for a US research base in Antarctica for a year. All food was provided and housing paid for. With nowhere to spend money, I saved 85% of my income.

The problem is that most offshore or contract workers make two very common mistakes. For one, most are not even thinking of retirement. Due to the dangers of their jobs, they have a live-in-the-moment attitude. While a great many earn over US$100,000 (over 3.3mn baht) per year, very few save much of it.

The second mistake that many make is buying unit-linked life assurance products. These products not only have upfront fees, but recurring fees every year; poor performance; and seven to 10-year lock-in periods. Anyone who is familiar with these products knows to run away as fast as they can.

What offshore oil workers should be focused on is saving their money in a low-cost discount brokerage account held in their own name only and reaping the benefits of compounded interest.

Considering how cheap it is to live in Thailand, let’s say the worker is able to save US$50,000 (about 1.65mn baht) a year for 10 years. The key is putting that money to work in a diversified portfolio exposed to the stock market, which, over time, appreciates in value. The goal is to be able to retire in just 10 years.

For the past 10 years, the Vanguard REIT ETF has achieved an annual return of 9.29%. This
return was achieved even with the real estate crash of 2008 and 2009. That’s why it’s important to invest for the long haul. Over a 10-year period, if the Vanguard REIT ETF was the only holding in a portfolio, and by investing US$50,000 a year, there would now be US$963,351 (more than 31mn baht) in the portfolio.

The best part about this program is that it’s only saving half a year’s salary. The rest can still be spent and enjoyed. The key is setting one up so that retirement within 10 years is realistic. With an actively-managed portfolio, there could be more than US$1mn in the portfolio.

Just look at shares of Facebook. Since July of last year, shares have gone from just above US$20 to almost US$80.

Or look at the NASDAQ stock market, which is up 27% in the past year.

So what happens when the 10 years is up and the worker is ready to retire? Do they have to stop spending money? No, not at all. The good news is that they are used to living on US$50k a year in Thailand.

Once the 10 years is up, the portfolio is adjusted more conservatively and only a 5%
annual return is sought. This is just a little more than half of the 9% that the Vanguard REIT ETF
delivered in the past 10 years.

What is 5% on US$963,000? As might have been expected, it’s US$48,000.

At the end of 10 years, the worker has a roughly US$1mn nest egg, is retired and living on the same amount of money as when they were working offshore on the oil rig.

Don Freeman is president of Freeman Capital Management, an independent US Registered Investment Advisor. He has over 20 years experience and provides personal financial planning and wealth management to expatriates. Specializing in UK and US pension transfers. Call 089-970-5795 or email: freemancapital@gmail.com.

— Don Freeman

Keep in contact with The Thaiger by following our Facebook page.

Never miss out on future posts by following The Thaiger.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Business

Slow return of foreign tourism makes more redundancies inevitable – Airlines Association of Thailand

Maya Taylor

Published

on

Slow return of foreign tourism makes more redundancies inevitable – Airlines Association of Thailand | The Thaiger
PHOTO: Wikimedia

The president of the Airlines Association of Thailand says further layoffs in the sector are inevitable, due to the slow return of international tourism. In a Bangkok Post report, Puttipong Prasarttong-Osoth says the sluggish revival of foreign tourism, now not expected until the last quarter of the year, means all carriers continue to face financial hardship. And while there was a surge in the domestic market during the last quarter of 2020, the return of the virus in late December brought demand to a grinding halt.

“We suffered a tremendous domestic impact during the second wave, and it will take months to climb back to its peak again. While re-opening for international markets will likely occur with few countries that have bilateral agreements with Thailand first, as health safety is a big issue for local communities.”

Significant layoffs have already happened over the course of the pandemic, with staff numbers at 7 carriers under the AAT umbrella now standing at 16,000, down from between 25,000 and 30,000, prior to Covid-19. Bangkok Airways has cut 20% of its workforce and only has 30% of its fleet in operation. Puttipong, who is also the airline’s president, says it transported just 300 passengers a day during the month of January. Peak passenger numbers prior to the pandemic were around the 5,000 mark. Covid-19 has also led to the demise of low-cost carrier Nok Scoot, which went out of business in June 2020.

Puttipong predicts that Thailand’s aviation sector could take 4 years to get back to anything like the 40 million foreign arrivals of 2019. He says all carriers will need to look at cost-saving initiatives as the only means of long-term survival. Thai Air Asia is one of 7 airline members of the AAT calling for a 14 billion baht soft loan. The carrier has been pushing the government to re-open, warning that Thailand risks losing its status as an international hub.

The Bangkok Post reports that the AAT plans to submit 3 requests to state agencies this week. They are calling for the vaccination programme to be extended to airline workers as a matter of priority, for the rapid introduction of a vaccine passport policy, and for the Transport Ministry to prepare the necessary regulations for international flights.

Puttipong has welcomed the recent decision to reduce quarantine for vaccinated arrivals, pointing out that the 14-day quarantine was the most significant hurdle preventing the return of foreign tourists.

“It’s quite impossible for tourists and business travellers to take 14-day quarantines before and after trips. They might have money to spend, but they don’t have the luxury of time to be kept in isolation for almost a month.”

SOURCE: Bangkok Post

Keep in contact with The Thaiger by following our Facebook page.

Never miss out on future posts by following The Thaiger.

Continue Reading

Thailand

Facebook removes “information-influencing” pages linked to Thai military

Maya Taylor

Published

on

Facebook removes “information-influencing” pages linked to Thai military | The Thaiger
PHOTO: Facebook

Facebook has confirmed the removal of 185 accounts run by the Thai military and allegedly involved in information-influencing. The social media giant says the accounts were deleted for engaging in what it calls, “coordinated inauthentic behaviour”. In total, 77 accounts, 72 pages, and 18 groups have been removed from the platform, in addition to 18 Instagram accounts. It’s the first time Facebook has taken such action against accounts linked to the Thai government.

The accounts were associated with the Thai military and were targeting people in the southern provinces, Facebook said its regular report on coordinated inauthentic behavior. The south of the country has been the scene of decades-long conflict, with insurgent groups in the majority-Muslim, Malay-speaking region calling for independence. To date, around 7,000 people have died in the ongoing struggle.

Facebook says the deleted accounts were most active last year and used both fake and real accounts to manage pages and groups, both openly military pages and pages that hid their links to the military. Some of the fake profiles pretended to be people from the southern provinces.

The report mentioned a post by the now-removed account named “comprehending the operation” in Thai. The page posted the logo for Amnesty International Thailand and wrote “The NGO never cares about ordinary citizens because they have no role in society. Normal people are not famous. Any case is not big news. They are not worth the investment of foreigners so they will not do anything to help. This is why we don’t see anything from the NGO.”

Facebook removes “information-influencing” pages linked to Thai military | News by The Thaiger

Image overlay translates to “The NGO never cares about ordinary citizens because they have no role nor money.”

On another now-removed account, named “truth about my home Pattani” in Thai, a post said “Muslim leader declares southern border is a peace zone. The southern separatists started a movement by spreading the idea that Thailand is under control by different believers so that people would come and fight for their religion. This was declared that the action clearly violates Islam faith.”

Facebook removes “information-influencing” pages linked to Thai military | News by The Thaiger

Image overlay translates to “Southern border is not Jihad zone.”

When contacted by Reuters, the military had no comment on the removal of the Facebook accounts, with a spokesman saying the organisation does not comment outside of official press conferences.

The head of Cybersecurity Policy at Facebook, Nathaniel Gleicher, has confirmed the reasons behind the platform’s decision.

“This is the first time that we’ve attributed one of our takedowns to links to the Thai military. We found clear links between this operation and the Internal Security Operations Command. We can see that all of these accounts and groups are tied together as part of this operation.”

He adds that the accounts had spent around US$350 on advertising on both Facebook and Instagram. One or more of the pages had about 700,000 followers and at least one of the groups had 100,000 members. Gleicher says the accounts were removed because of their misleading behaviour and not because of the content being posted. The content included support for the military and the monarchy, with allegations of violence and criticism of insurgent groups in the south.

It’s not the first time accounts linked to the Thai military have been removed by a social media platform. In October, Twitter removed 926 accounts it says had links to the army and posted pro-military and pro-government content. The Thai army has denied any involvement with the accounts in question. In November, Twitter also suspended an account posting pro-monarchy content that was found to have links to the palace and to thousands of other accounts posting similar content.

To read the February 2021 Coordinated Inauthentic Behavior Report, click HERE.

SOURCES: Reuters| Facebook

Keep in contact with The Thaiger by following our Facebook page.

Never miss out on future posts by following The Thaiger.

Continue Reading

Central Thailand

Airline executive arrested for failure to pay wages of 150 workers

Maya Taylor

Published

on

Airline executive arrested for failure to pay wages of 150 workers | The Thaiger
PHOTO: Wikimedia

An airline executive has been arrested in the central province of Samut Songkhram, after complaints from150 employees that they had not been paid. Chawengsak Noiprasan, who had a court warrant issued against him in October, was taken to Don Muang police station from a property in the Bang Khan Take sub-district. He is a board member of Siam Air Transport.

The airline began operations in October 2014 with services out of Don Mueang to Hong Kong, using 2 Boeing 737-300s. 2 Boeing 737-800s were added to its fleet in late 2015. It expanded by adding Zhengzhou and Guangzhou in China to its network in early 2015. In late 2015, the airline launched flights to Macau and Singapore. In 2017, the airline ceased all operations.

But according to an article in the Bangkok Post, the carrier operates a number of scheduled and charter flights from Bangkok’s Don Mueang Airport. The Post reports that, as Chawengsak signs the company’s legal paperwork, all legal matters concerning the airline fall to him.

The Metropolitan Police Bureau says the executive has admitted to ignoring a 30 day notice issued by the labour inspector and ordering the payment of wages to 150 workers. It’s understood he is also wanted in relation to 7 other cases.

The authorities sought Chawengsak’s arrest following complaints from employees who say they haven’t received their wages for 2 months. It’s understood the airline had previously deferred salary payments for over 8 months. 150 workers filed an official complaint with Don Mueang police and also approached media outlets, asking them to pressure the airline into paying the money owed.

SOURCE: Bangkok Post

Keep in contact with The Thaiger by following our Facebook page.

Never miss out on future posts by following The Thaiger.

Continue Reading
Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4 | The Thaiger
Thailand5 days ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO | The Thaiger
Tourism6 days ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2 | The Thaiger
Phuket7 days ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Phuket Thai food treats you need to try | VIDEO | The Thaiger
Tourism2 weeks ago

Phuket Thai food treats you need to try | VIDEO

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23 | The Thaiger
Thailand2 weeks ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

In search of Cat & Dog Cafés in Phuket Town | VIDEO | The Thaiger
Tourism2 weeks ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21 | The Thaiger
Thailand2 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19 | The Thaiger
Thailand2 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18 | The Thaiger
Thailand2 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15 | The Thaiger
Thailand2 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14 | The Thaiger
Thailand2 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13 | The Thaiger
Thailand2 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12 | The Thaiger
Thailand2 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11 | The Thaiger
Thailand2 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8 | The Thaiger
Thailand2 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Follow The Thaiger by email:

Trending